Citizens Jmp Cuts ServiceNow (NYSE:NOW) Price Target to $157.00

Key Points

• Citizens Jmp cut its price target on ServiceNow from $260 to $157 while maintaining a "market outperform" rating, and multiple other brokers also trimmed targets leaving a consensus price target near $153.15.
• ServiceNow beat Q1 revenue expectations and raised its subscription revenue outlook as subscription revenue grew about 22% year-over-year, driven by stronger AI adoption for its platform.
• Despite the beat, the stock plunged to $85.45 on heavy volume amid investor concern over near-term headwinds from the Armis acquisition (roughly a 75 bp FY operating-margin hit, 125 bps in Q2) and delayed large deals in the Middle East.

ServiceNow (NYSE:NOW - Get Free Report) had its price objective decreased by equities research analysts at Citizens Jmp from $260.00 to $157.00 in a research report issued on Thursday,Benzinga reports. The brokerage presently has a "market outperform" rating on the information technology services provider's stock. Citizens Jmp's price objective would suggest a potential upside of 83.74% from the stock's previous close.

NOW has been the topic of several other research reports. Needham & Company LLC decreased their price objective on ServiceNow from $155.00 to $115.00 and set a "buy" rating on the stock in a report on Thursday. BNP Paribas Exane raised ServiceNow from a "neutral" rating to an "outperform" rating and set a $140.00 target price on the stock in a research note on Monday, March 16th. Truist Financial cut their target price on ServiceNow from $125.00 to $120.00 and set a "buy" rating on the stock in a research note on Thursday. Mizuho cut their target price on ServiceNow from $150.00 to $140.00 and set an "outperform" rating on the stock in a research note on Thursday. Finally, Evercore cut their target price on ServiceNow from $175.00 to $140.00 and set an "outperform" rating on the stock in a research note on Thursday. Three analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, ServiceNow currently has an average rating of "Moderate Buy" and a consensus price target of $153.15.

ServiceNow Price Performance

NYSE:NOW traded down $17.62 during trading hours on Thursday, hitting $85.45. 31,621,390 shares of the company's stock traded hands, compared to its average volume of 20,111,699. The firm has a market cap of $88.54 billion, a P/E ratio of 51.34, a P/E/G ratio of 1.68 and a beta of 1.01. ServiceNow has a 52 week low of $81.24 and a 52 week high of $211.48. The business's fifty day simple moving average is $105.55 and its two-hundred day simple moving average is $138.83. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.12.

ServiceNow (NYSE:NOW - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The information technology services provider reported $0.97 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.97. The company had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.75 billion. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The firm's quarterly revenue was up 22.1% on a year-over-year basis. During the same quarter last year, the company earned $4.04 earnings per share. On average, research analysts anticipate that ServiceNow will post 2.49 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $101.17, for a total transaction of $151,755.00. Following the transaction, the director directly owned 46,430 shares of the company's stock, valued at $4,697,323.10. This represents a 3.13% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Kevin Thomas Mcbride sold 1,400 shares of the stock in a transaction on Friday, February 13th. The shares were sold at an average price of $105.71, for a total value of $147,994.00. Following the transaction, the insider directly owned 26,314 shares in the company, valued at $2,781,652.94. The trade was a 5.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 16,237 shares of company stock valued at $1,697,162 in the last ninety days. 0.34% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. IAG Wealth Partners LLC raised its holdings in ServiceNow by 200.0% in the 3rd quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 18 shares during the period. Noble Wealth Management PBC raised its holdings in ServiceNow by 400.0% in the 4th quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 128 shares during the period. Millstone Evans Group LLC raised its holdings in ServiceNow by 400.0% in the 4th quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 132 shares during the period. CBIZ Investment Advisory Services LLC raised its holdings in ServiceNow by 540.0% in the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 135 shares during the period. Finally, Blueline Advisors LLC bought a new position in ServiceNow in the 4th quarter worth $25,000. 87.18% of the stock is currently owned by institutional investors.

More ServiceNow News

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Q1 subscription revenue and top-line: Subscription revenue grew ~22% YoY and overall Q1 revenue slightly beat consensus, showing continued demand for ServiceNow’s AI-driven platform. BusinessWire Q1 Release
• Positive Sentiment: Company raised its annual subscription revenue outlook, citing stronger AI adoption — a sign management sees sustainable demand for Now Assist and related products. Reuters: Boosts Outlook
• Neutral Sentiment: Strategic moves: ServiceNow closed the Armis acquisition to expand into OT/IoT/cyber asset visibility and announced deeper Google Cloud AI integrations — positive long-term product synergy but with short-term execution risk. Yahoo: Google Cloud Partnership
• Neutral Sentiment: Management tone and events calendar: CEO emphasized AI-driven productivity and an Analyst Day is scheduled for May 4 — useful for forward guidance clarity. Investors.com: Analyst Day
• Negative Sentiment: Middle East deal delays: Management said delayed large deals in the Middle East created ~75 bps of subscription-revenue headwind in Q1 and could push some closures into later quarters — an immediate growth and sentiment headwind. Yahoo: Deal Delays
• Negative Sentiment: Margins to be pressured by Armis purchase: ServiceNow warned the acquisition will create a roughly 75‑bp FY operating-margin headwind (125 bps in Q2), which contributed to investor concern about near-term profitability. WSJ: Armis Margin Impact
• Negative Sentiment: Market reaction and analyst moves: Despite the beat, sentiment soured — multiple shops trimmed price targets and the stock drew higher short interest amid broader AI/disruption worries, amplifying the selloff. Finviz: Analyst PT Cuts Reuters: Short Interest

About ServiceNow

ServiceNow NYSE: NOW is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company's flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.

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